What to Expect When Phillips 66 (PSX) Reports Earnings Friday - TheStreet

NEW YORK (TheStreet) -- Phillips 66 (PSX) - Get Report will release its 2015 third quarter earnings results before the market open on Friday morning.

Analysts are expecting the oil and gas refining company to post a year over year rise in earnings per share but a decline in revenue for the most recent quarter.

The company has been forecast to report earnings of $2.24 per share on revenue of $29.7 billion for the September ended period.

Phillips 66's earnings came in at $2.09 per share on revenue of $41.05 billion for the 2014 third quarter.

Based in Houston, Phillips 66 is an energy manufacturing and logistics company with midstream, chemicals, refining and marketing and specialties businesses.

Shares of Phillips 66 closed higher by 1.64% to $84.89 on Wednesday afternoon. Energy stocks rallied today due to the rise in oil prices.

Separately, TheStreet Ratings team rates PHILLIPS 66 as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate PHILLIPS 66 (PSX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, notable return on equity and attractive valuation levels. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 17.3% when compared to the same quarter one year prior, going from $863.00 million to $1,012.00 million.
  • The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.16, which illustrates the ability to avoid short-term cash problems.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, PHILLIPS 66's return on equity exceeds that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: PSX